OUTLINE

These amendments are designed to
address issues raised in submissions to the Joint Select Committee
on Gambling Reform and the recommendations of the Joint Select
Committee on Gambling Reform in its report dated
23 November 2012.

The amendments make changes to
the timing of the start of the ATM withdrawal provisions, and
provide further detail about the operation of the supervisory levy,
including setting a cap on the total amount payable by licensees of
gaming machine premises and allowing the levy to start at different
times for different types of gaming machine premises.

The amendments also provide for
transaction statements to be provided to registered users in an
electronic format. They also address concerns that the
Regulator should only make approvals of precommitment systems for a
particular State or Territory where it can be satisfied that the
law of that State or Territory requiring the precommitment system
to be approved has also been complied with.

Amendments are also proposed
addressing industry concerns that the supervisory levy payable by
gaming machine premises should reflect the true cost to the
Commonwealth of the administration of the new Act.

An amendment is also proposed
confirming that the supervisory levy is not to be used to recover
the costs of the Australian Gambling Research Centre.

In addition, amendments are
proposed to require further matters to be referred to the
Productivity Commission for inquiry. These amendments address
recommendations made by the Joint Select Committee on Gambling
Reform in its report.

Some minor editorial amendments
are also proposed.

Financial
impact statement

These
amendments have nil or negligible financial
impact

National
Gambling Reform Bill 2012

Amendments to be
moved on behalf of the Government

NOTES ON
AMENDMENTS

Amendment
1 makes an amendment
to the application (start date) of the ATM withdrawal limit
provisions of the Bill. The amendments remove the date
1 May 2013 and insert the date 1 February
2014 .
This amendment provides approximately one year within which to
implement the ATM withdrawal limit requirements.

Amendment 2 makes an editorial
change to clause 16 by inserting the number 1 at the start of the
clause to make the clause into a subclause. This takes
account of amendment 4 below, which inserts a new subclause
16(2).

Amendment 3 removes the words,
‘the day this Act commences’, and replaces them with
the words, ‘the day or days prescribed by the regulations for
the purposes of this subsection’. The effect of this
amendment is to clarify that the supervisory levy cannot start to
be collected until after a date, or dates, that will be set out in
regulations that are to be made under section 6 of the National
Gambling Reform (Related Matters) Act (No. 1) 2012.

Amendment 4 adds a new subclause
16(2). The new subclause provides that the regulations, made
under the National Gambling Reform (Related Matters) Act (No. 1)
2012 may prescribe different start days for the supervisory
levy for different types of gaming machine premises.

Amendment 5 inserts a new
subclause 34(3A) after the existing subclause 34(3). The
new subclause provides that a transaction statement required to be
given by subclause 34(1) may be given to a person in an electronic
format if the person who asked for the transaction statement
requests for it to be provided in that way.

Amendment 6 adds a new paragraph
at the end of subclause 51(1). The new paragraph
adds a new matter about which the Regulator must be satisfied when
approving precommitment systems for a State or
Territory.

This new clause applies
where:

· a law of a State or
Territory requires that a precommitment system is approved under a
State or Territory law; and

· a precommitment
system has been approved under that law; and

· that system meets
the requirements of the Commonwealth’s
legislation.

In a practical sense, this is
when a State government has already approved a particular
precommitment provider to run a State system that is compliant with
our legislation.

In these circumstances, the
Commonwealth regulator can only approve the precommitment system
that the state has already approved.

This ensures that the Regulator
does not approve a precommitment system for a State or Territory
that is not capable of operating in that State or Territory because
of the application of State or Territory law.

Amendment 7 makes an editorial
change to remove the word ‘may’ from clause 54 and
replaces it with the word ‘must’. This ensures
that, where a precommitment system does not meet the standards
required, the approval for that system is revoked. The
editorial change removes any doubt around whether the provision is
intended to be discretionary, and ensures that amendment 8
below operates as intended.

Amendment 8 adds a new paragraph
at the end of subclause 54(1). The new paragraph
provides that the Regulator may revoke the approval of a
precommitment system if a law of a State or Territory requires that
a precommitment system is approved under State or Territory law and
the precommitment system is not approved under the relevant State
or Territory law. This ensures that the Regulator does not
maintain the approval of a precommitment system for a State or
Territory that is not capable of operating in that State or
Territory because of the application of State or Territory
law.

Amendment 9 inserts a note at
the end of clause 82. The new note confirms for the reader
that the amount of supervisory levy that is payable in a calendar
year cannot be more than the amount in the Minister’s
determination, which in turn cannot be higher than the cap on the
levy. The cap and the arrangements for Ministerial
determination are set out in new clause 84A, which is inserted
by amendment 12 below.

Amendment 11 adds a new subclause
83(2). This subclause allows for the regulations to provide
different arrangements for classes of gaming machine premises in
relation to their liability to pay the supervisory levy.
Amendment 10 makes editorial changes to allow for the
insertion of this new subclause.

Amendment 12 inserts new clauses
84A, 84B and 84C into the Bill.

New clause 84A sets out the
arrangements for a cap on the total amount of supervisory levy that
is payable to the Commonwealth in a calendar year.

New subclause 84A(1) provides
that the total amount of the supervisory levy that is payable for a
calendar year cannot exceed the amount that is set by Ministerial
determination for that calendar year.

New subclause 84A(2) authorises
the Minister to determine, through a legislative instrument, the
total amount of supervisory levy that is payable in a particular
calendar year (the levy year ). The Minister
will make this determination annually.

When making a determination
under new subclause 84A(2), the Minister must consult with the
persons liable to pay the supervisory levy under clause 84 as
provided for in new subclause 84A(3). This consultation
can be directly with gaming machine premises affected, or through
representative bodies.

In addition, new
subclause 84A(4) sets the parameters for the Minister’s
annual determination. The total amount of supervisory levy in
the Minister’s determination cannot be higher than the lower
of:

(a) either:

(i) $10 million (the
cap); or

(ii) if a lower amount
has been prescribed in the regulations for the purposes of new
clause 84B discussed below (the revised cap) - that
amount;

(b) the total costs to
the Commonwealth of administering the new Act in the last financial
year before the levy year, as published by the Regulator (set out
in new paragraph 111(4)(ca), inserted by amendment 13
below).

New subclause 84A(5) provides
that the regulations may specify an index for the purposes of this
section and a way of working out an increase to the amounts
referred to in new paragraph 84A(4)(a). The method for
working out any increase that is to apply must be by reference to
the movement of that index over the year ending 31
December.

New subclause 84A(6) provides
that, if there is an increase in the index referred to in subclause
84A(5) for a particular year, the amount referred to in subclause
84A(4)(a) above is increased in a way set out in the
regulations.

New subclause 84A(7) provides
that the regulations can describe how any amount collected that is
over and above the amount determined by the Minister is to be
returned to those liable to pay the levy. As the levy will be
based on the actual costs to the Commonwealth in the previous
financial year, excess levy could only be collected in the case of
an error. This subclause allows any such amounts to be
returned to industry.

New subclause 84A(8) provides
that, in the unlikely event that there is a failure in the
collection of the levy which leads to more than the amount
determined by the Minister being collected, the regulations would
not be invalid. However, any excess collected would be
returned to industry.

New subclause 84B(1) provides
that, within 12 months of the Act commencing, the Regulator must
estimate, in writing, the total costs to the Commonwealth of
administering the new Act in a full year of operation. This
review of the cap after 12 months will allow for negotiations with
the States and Territories about their willingness to take on
regulatory functions under the new Act.

New subclause 84B(2) provides
that the regulations may set out an amount less than $10 million,
which will then become the maximum amount (the revised cap) of
supervisory levy that is payable in a calendar year if the costs
published by the Regulator are less than $10
million.

The note at the end of new
subclause 84B(2) confirms that the total amount of supervisory levy
that is payable in any given calendar year cannot be more than the
amount set out in the regulations (the revised cap) for the
purposes of subclause 84B(2).

New subclause 84B(3) confirms
that the regulations for the revised cap cannot exceed the
costs estimated by the Regulator as the cost to the Commonwealth in
a full year of operation, as set out in new
subclause 84B(1).

New clause 84C confirms that the
Minister will undertake a review of the maximum amount of
supervisory levy payable under paragraph 84A(4)(a) within five
years of the Act commencing. As part of that review, the
Minister must consult with the persons liable to pay the
supervisory levy either directly or through representative
bodies .

Amendment 13 inserts a new
paragraph (ca) into clause 111 to provide that the Regulator must
include the total cost to the Commonwealth, during the year, in
relation to the administration of the Act in the Regulator’s
annual report.

Amendment 14 adds a note to the
end of clause 111. The new note signposts new clause
84A, and reminds the reader that the total amount of supervisory
levy payable in a calendar year cannot exceed the total costs to
the Commonwealth of administering the Act for the previous
financial year.

Amendment 15 makes an editorial
change to clause 192, which sets out the guide to the
chapter. These editorial changes reflect the amendments that
are made to clause 194 by amendment 17 below, which describe
additional matters that must be referred to the Productivity
Commission.

Amendment 16 makes an editorial
change to the heading to clause 194 as a result of amendment 17
below. The new heading reflects the fact that the matters
referred to the Productivity Commission are wider than an
assessment of the progress of the reforms.

These new paragraphs provide
that the Productivity Minister must refer the following additional
matters to the Productivity Commission for inquiry:

· whether the
prohibition on the use of biometric processes in
subclause 29(3) should be retained;

· the use of loyalty
schemes of gaming machine premises as part of providing
precommitment systems;

· whether limits
should be placed on cash withdrawals at gaming machine premises
from electronic funds transfer at the point of sale; and

· whether there are
grounds for smaller gaming machine premises in regional and remote
areas to be exempt from precommitment system and dynamic warning
requirements.

New paragraph 194(1)(f) provides
that any other matter that the Minister who administers the Act
considers is relevant can also be referred to the Productivity
Commission for inquiry.

Amendment 18 makes an editorial
change to the note at the end of clause 194 by making it Note
1. This takes account of amendment 19 below, which inserts a
new Note 2.

Amendment 19 adds a new Note 2
after the original note to clause 194. The new note
is a signpost to subclause 196(3) which provides for the Australian
Gambling Research Centre.

Amendment 20 removes subclause
196(2) and substitutes a new subclause 196(2). The new
subclause 196(2) provides that the supervisory levy may not be used
to recover the costs associated with the Director performing the
functions set out in subclause 196(1).

National
Gambling Reform (Related Matters)
Bill ( No. 1) 2012

Amendments to be
moved on behalf of the Government

NOTES ON
AMENDMENTS

Amendment 1 makes an editorial
change to clause 6 to account for the changes proposed by amendment
2 below. Amendment 1 identifies the existing note to clause 6
as Note 1, given that a further note will be added to the end of
clause 6 by amendment 2.

Amendment 2 inserts new Note 2
at the end of clause 6.

New Note 2 confirms, as set out
in clause 84A of the new National Gambling Reform Act 2012 ,
that the maximum amount of supervisory levy that is payable to the
Commonwealth in any given calendar year must not be more than the
amount determined by the Minister.